CIS: Sebi slaps Rs 1 cr fine on Ken Infratech, directors

In a major crackdown, regulator Sebi today slapped a Rs 1 crore penalty on Ken Infratech and its directors for mobilising funds from investors through illegal money pooling schemes.
The company had illegally mobilised funds from gullible investors in the name of maintaining and developing plots.
"...noticees are engaged in the fund mobilising activity from public through investment contracts by floating/ sponsoring/ launching collective investment schemes ...without having registration with the Sebi," the regulator said in an order.
Besides, Sebi noted that these entities have not complied with its orders passed in December 2014, wherein it had abstained them from collecting any money from investors and had asked them to wind up the existing schemes and refund the capital collected from the investors through such schemes.

"However, I find that there is nothing on record to show that noticees have complied with the said directions. Incidentally, I also note that Sebi has issued a press release ...cautioning investors against unregistered CIS and also published a list of such CIS. I find that the name of noticee 1 (Ken Infratech) is appearing in the said caution list," Sebi Adjudicating Officer and General Manager K Sarvanan said.
Accordingly, the regulator has imposed a penalty of Rs 1 crore jointly and severally on the noticees -- Ken Infratech Ltd, Sukhwinder Singh, Kuldeep Singh, Gurwinder Singh, Sukhchain Singh and Mahavir Singh.